DC Green Scene

The guarantee of a stable revenue stream over the life of the generation plant lowers the risk that large investments in exploration and development will not yield an off-take agreement. The combination of a guaranteed purchase, a pre-determined payment price, and a standardized off-take agreement can relieve some of the cost, risk, and pressure associated with overall project development since the project does not need to compete for or negotiate a contract before final project costs are known. Overall, FIT policies can include risk-mitigating elements and can be tailored to support a few key financial risks of geothermal development (exploration risks were not included in detail).